- A Tax Appeal Commission in Ireland dismissed a taxpayer’s appeal regarding the VAT margin scheme for the purchase and resale of second-hand cars.
- The taxpayer specialized in importing and selling high-end second-hand cars from suppliers in England and Northern Ireland.
- Revenue found that the taxpayer treated some cars as intra-community acquisitions and accounted for reverse charge Irish VAT, while others were treated as margin scheme goods.
- Revenue determined that the conditions for the margin scheme were not fulfilled, as the purchase invoices did not include the necessary wording and some invoices quoted the taxpayer’s VAT registration number.
- The Commissioner concluded that Irish VAT would apply on the full resale price of the cars, rather than just the profit margin.
- The Commissioner stated that the taxpayer did not provide sufficient proof to establish eligibility for the margin scheme and did not take all necessary steps to do so.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
